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AVGO vs FIG

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
FIG
Figma, Inc.
BEARISH
Price
$17.47
Market Cap
$9.21B
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
AVGO
68.48
FIG
--
Forward P/E
AVGO
19.65
FIG
60.98
P/B Ratio
AVGO
20.79
FIG
5.93
P/S Ratio
AVGO
24.35
FIG
8.72
EV/EBITDA
AVGO
46.0
FIG
-5.9

Profitability

Gross Margin
AVGO
76.73%
FIG
82.43%
Operating Margin
AVGO
44.94%
FIG
-64.36%
Profit Margin
AVGO
36.57%
FIG
-118.44%
ROE
AVGO
33.37%
FIG
-88.23%
ROA
AVGO
10.66%
FIG
-38.95%

Growth

Revenue Growth
AVGO
29.5%
FIG
40.0%
Earnings Growth
AVGO
31.6%
FIG
--

Financial Health

Debt/Equity
AVGO
0.83
FIG
0.04
Current Ratio
AVGO
1.9
FIG
2.58
Quick Ratio
AVGO
1.67
FIG
2.45

Dividends

Dividend Yield
AVGO
0.74%
FIG
--
Payout Ratio
AVGO
47.17%
FIG
0.0%

AI Verdict

AVGO NEUTRAL

Broadcom exhibits a dichotomy between elite operational performance and poor deterministic value metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a massive premium to its Graham Number ($44.08) and Intrinsic Value ($151.04). This valuation gap is partially justified by a very attractive PEG ratio (0.68) and strong forward P/E (19.65), suggesting high growth expectations. However, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, offsets the strong analyst 'strong_buy' consensus.

Strengths
Exceptional profitability with 76.73% gross margins and 44.94% operating margins
Strong growth trajectory with ~30% YoY increases in both revenue and earnings
Impressive earnings track record with consistent beats over 25 quarters
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Strong bearish insider sentiment with 14 sell transactions and 0 buys
Technical trend is currently 0/100 (Bearish)
FIG BEARISH

FIG exhibits severe financial instability, highlighted by a weak Piotroski F-Score of 2/9 and a catastrophic 1-year price decline of 84.9%. While the company maintains a strong gross margin (82.43%) and robust revenue growth (40%), these are overshadowed by a profit margin of -118.44% and aggressive insider selling. The lack of an Altman Z-Score prevents a definitive bankruptcy calculation, but the combination of negative ROE and a bearish technical trend suggests significant risk. The stock is currently trading near its 52-week low, reflecting a massive loss of investor confidence.

Strengths
Strong Gross Margin (82.43%) indicating high product value
Robust YoY Revenue Growth of 40.00%
Very low Debt/Equity ratio (0.04)
Risks
Severe negative profitability (Profit Margin: -118.44%)
Extreme price volatility and downward momentum (-84.9% 1Y change)
Bearish insider sentiment with $27.99M in net sales

Compare Another Pair

AVGO vs FIG: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Figma, Inc. (FIG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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